Hi Everyone,
I've recently been exposed to some unusual banking deals and wonder what's it all about. A bank called Santander came to my place of employment last week offering $20 per month just for opening a checking and savings account and switching direct deposit paychecks to an account at their bank. There didn't seem to be any unusual fees associated with the account and I'm wondering how they can make an offer that sounds too good to be true.
Today I also just got an offer from American Express in my e-mail - apparently they are getting into regular banking and will pay me $50 for having my paycheck going into an account with them.
I'm wondering if the banks have some new scam going. Do you think they can somehow invest off the concept that they have a certain amount of direct deposits coming into the bank, even if these same customers are also spending the money as fast as it comes in?
I'm also wondering if this is a sign that a banking collapse could be coming closer. Anyone know anything more about this?
probably just a scheme at pretending as people are discovering that there's no gold in fort knox. seriously, they're faking having the assets to feign security as people start to panic. those greedy goldsmiths and moneylenders still don't see the impending demise of their little ruse. it's going to be a mess. and nobody will win because shelter and sustanance are more important than the illusion of $, so paper and gold and silver will have no intrinsic value anymore, cuz who cares if there's no food on the table?
the value lies in US and what we do with our "time" here. otherwise there's no explanation for the fact that this world still supports us despite our massive "failings". WE are recreating it every day...
sounds like banks trying to position themselves to handle payroll, just another step in that twisted agenda. If you control a lot of payroll,,,and we went paperless(no cash),,the people in control of the cyber cash control your life,,,,being able to turn it on and off! It won't work,,,but they seem to just keep taking those little steps , trying to set themselves up with more control....I hope it is another sign that collapse is near,,,,it feels good when another clump of toxic cells die off and are expelled by the body as sweat,urine,crap,etc......
it feels good when another clump of toxic cells die off and are expelled by the body as sweat,urine,crap,etc......"
That's the best summary ever on banking.
This scheme is touted as being simple for customers to understand, but it sounds complicated to me. ~ Noa
http://www.mybanktracker.com/news/2013/11/05/santander-bank-extra20-chec...
Santander Checking Account Pays Up to $20 Per Month
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JuliusKielaitis / Shutterstock.com
Santander Bank, the new name for the former Sovereign Bank, launched a new checking account that allows customers to earn up to $240 per year by meeting certain requirements that include direct deposits and online bill payments.The bank’s new extra20 checking account pays customers $10 for each month that they post a total of $1,500 in deposits and another $10 when that they pay two bills through Santander’s online bill pay service. The bonuses earned are deposited into an accompanying extra20 savings account.
The extra20 checking account has a $10 monthly fee, which can only be waived with a total combined direct deposits of at least $1,500 per month. Not only do you earn $10 for post $1,500 in direct deposits, you also avoid the monthly fee.
The extra20 savings account has a $3.50 monthly fee, but it can be waived when linked to an extra20 checking account or with a $100 average daily balance.
“The idea for extra20 checking came from Santander’s desire to create a banking product that could be made available to a wide range of consumers, that would be simple to understand and that would help customers achieve their financial goals,” said Fabio Collazo, director of retail product development at Santander, in an email statement.
Santander also offers an account-switching service that will help customers reroute their direct deposits and online bill payments, both of which are important to earn the monthly $20 bonuses with the extra20 checking account.
“Most customers will find it easy to switch their existing checking account over to extra20 checking on their own,” Collazo said. “For customers who need a bit of extra assistance, they can visit any of our branches in person or call our dedicated Switch Services team.”
Cashing in
The financial incentive behind Santander’s extra20 checking account is likely to draw the deposits of many consumers.
At $240 in cash bonuses per year, the account pays the equivalent of 2.40% APY on a balance of $10,000. In a low-interest-rate environment, the cash bonuses for common financial activities are attractive.
Some customers may even opt to split their direct deposits between the extra20 checking account and a high-yield savings account to maximize their earnings.
However, for tax purposes, the bonuses are treated the same way as interest earnings, which are reported to the IRS through Form 1099-INT.
Hi Noa,
Thanks for finding this. The article still doesn't explain how the bank can afford to do this. Just because people are having their paychecks directly deposited into the bank doesn't mean they are actually keeping much money there. They make it sound like it's just interest on what you have there but I was assured by their representatives that there is no minimum amount that need to be kept in either account.
There must be some way they can lend only using the fact that they have a certain amount of direct deposits - perhaps in the world of computer investing they can invest the payroll money for a few minutes before actually paying the bills. It will be interesting to hear what people at work have to say about them.
Wendy
probably need payroll checks deposited so hourly deposits look bigger so they can borrow more so they can gamble more on the stock market.